An e-invoice is an invoice that is sent, received and processed entirely electronically. The e-invoice contains the same information as a regular invoice, but in a structured electronic format and is sent via a so-called invoice exchange to the recipient. There it is received directly in a financial system or a pre-system ready for certification and can be processed fully automatically if supported.
The fact that the e-invoice is an electronic file, filled with information that feeds the business system with important data, reduces the number of manual steps in invoice processing. At the same time, the e-invoice is so flexible that it can be delivered via different routes. If you don't have an ERP system, you can send them via an invoice portal such as Inexchange. We offer several easy-to-use invoice services.
With e-invoices, the invoice reaches the right recipient faster, is certified and paid earlier, while the recipient has control over their purchases.
Those who work actively to increase the proportion of electronic supplier invoices quickly create a unique advantage. In an electronic invoice, all information is searchable. This means that the information contained in the invoice is separated or enclosed in tags. This makes it easy to retrieve the content down to the invoice line level. You can look at the item, how much you bought, at what price and any discounts. This is, of course, valuable information for a buyer, purchasing controller and also for a financial manager.
Because the figures and other facts in the e-invoice are so easy to extract and sort, it opens up for analysis, forecasts and calculations. It is the tool that delivers control and opportunities at the same time. The choice to send e-invoices also means that the recipient's work is made easier and more efficient. The advantage of having all the information included in the invoice thus has a double effect. No time needs to be wasted on entering information manually. Authorization procedures are also greatly simplified. And these are just two examples. Several repetitive steps are eliminated and processing time is radically reduced.
PDF invoices are sometimes confused with e-invoices because they are sent via email, but they are not actually electronic. The PDF invoice is actually an image of an invoice. This means that the PDF invoice must be interpreted or scanned in order to be read correctly. This is why both issuers and recipients prefer e-invoices. They know that all the information will be included on the invoice and that there will be no misinterpretation of the content.
Read more here:What is a PDF invoice?
The PDF invoice, sent as an email, is the form of invoice most vulnerable to attempts at forgery and fraud. But there are good ways to avoid getting caught. Check out thePDF to email link for tips on how to increase security when handling PDF invoices.
Two other common types of invoices are EDI invoices and PDF invoices.
EDI stands for Electronic Data Interchange and is the term used to describe the method of structuring business information in a particular format.
EDI invoices, also known as EDIFACT invoices, are based on an old standard and are usually very complex. It is sent using a one-to-one connection and has almost as many dialects as users.
There are different types of formats when we talk about e-invoices. The most common in Sweden is Svefaktura 1.0, but the intention is that this format will be phased out and gradually replaced by Peppol BIS Billing 3. Since 1 April 2021, Svefaktura is no longer recommended as a standard by the technical office SFTI (Single Face To Industry). Instead, Peppol BIS Billing 3 is recommended because it is a more modern format that coordinates more with today's requirements. It works better internationally, has greater flexibility, offers broader documentation and contains more support tools.
But Svefaktura can of course be used just as before. DIGG (the Swedish Agency for Digital Government) has deregistered Svefaktura from Peppol's network, but this is the only channel affected. The interconnection is not affected at all. Svefaktura works exactly as before.
We have put together an article that delves intothe invoice format. Please click on that link. It is a simple, but at the same time detailed account of an area that may seem unnecessarily complicated. It is not essential knowledge, but it is basic knowledge that can be valuable to know.
Sending an e-invoice is much more secure than sending a PDF or paper invoice. This is due to several reasons, but one important explanation is the accurateidentification. The e-invoice is associated with a reliable verification. The ID usually refers to the electronic address of the invoice. The invoice also includes other identifying information such as GLN number, organization number and in some cases VAT number.
More and more companies are requesting and even demanding e-invoices. The purpose is clear. It's about making invoice processing smoother, less time-consuming, more cost-effective and kinder to the environment. The e-invoice delivers all this - and more.
Many companies today receive both demands and requests from their customers that they want to receive e-invoices, but what does e-invoicing actually mean and why are these demands made?
There are an incredible number of different e-invoice formats, hundreds in fact. This is often not something you need to keep track of, because in most cases the recipient uses an operator, invoice exchange, which makes sure to deliver the format that the recipient can handle, regardless of which format the sender of the invoice uses.
The fact that there are requests, and in some cases even requirements, for e-invoices is due to several reasons. One reason is that since 2019 it has been a legal requirement that suppliers to the public sector in Sweden must send e-invoices. Another reason, which is also the basis for the legal requirement, is the significant advantage that you gain as a recipient of e-invoices. There are many advantages: you know that the information in the invoice is correct, in many cases it is handled without manual handling by the receiving system, it contains a lot of information that can be used for follow-up, statistics, etc. So the person receiving the e-invoice can use their time for other things than checking the accuracy of an interpreted PDF, you do not have to manually "enter" things into the system, it is automatically read.